Accounting & Financial Analysis of Target Corporation

Accounting & Financial Analysis of Target Corporation

Introduction

The central purpose of accounting and financial analysis is to understand the sources and availability of finance for businesses and skills for making effective financial decision making on the available information. In this essay, the focus would be on assessing various financial statements (balance sheet and income statement) of the Target Corporation, and most important how Target Corporation manage their resources while making budget, costing and pricing decisions (Aryasri, 2007).

Discussion

Overview of the company

Target Corporation was established in 1902, originally it was known as Dayton Dry Goods Company. Target Corporation is considering as a market giant in the retailing industry of United States and Canada. Company's headquarter is located in the Minneapolis, Minnesota. Target Corporation is publically traded on the New York stock exchange (NYSE). It is renowned as a successful retailing company in United States. 361,000 employees are working for the company. Gregg Steinhafel is working as a President, CEO and Chairmen of the company. There are around 1,788 stores of the target group in the United States. In addition, it also possesses 82 Target Stores in the Canada. First target store of Target Corporation was opened in 1962 in Roseville (Minnesota). Company has reported a net income of 2.999 billion in year 2012.



Are the assets incorporated under the Target Corporation's current assets listed in the proper order?

Target Corporation is following all the rules and provisions of U.S GAAP in reporting its financial position in the balance sheet. The reporting of current assets in the section of total asset is listed properly according to the requirements of reporting standards. Current assets are listed in the ascending order based on the liquidity of each asset.

Asset classification of Target Corporation

Assets are the financial resources ...